BIV vs XLE
Vanguard Intermediate-Term Bond ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
BIV has a lower expense ratio. XLE delivered stronger 1-year returns. BIV offers more diversification with 2,336 holdings.
Side-by-Side Comparison
| Metric | BIV | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $28.8B | $40.6B | |
| Dividend Yield | 4.28% | 2.55% | |
| Holdings | 2,336 | 24 | |
| YTD Return | -0.90% | +43.51% | |
| 1Y Return | +0.81% | +50.60% | |
| 3Y Return (annualized) | +4.61% | +16.00% | |
| 5Y Return (annualized) | -0.28% | +26.11% | |
| Volatility (annualized) | 5.7% | 25.1% | |
| Max Drawdown | -20.3% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
BIV vs XLE Performance
Vanguard Intermediate-Term Bond ETF (BIV) is a ETF from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year BIV returned +0.81% while XLE returned +50.60%. Year to date, BIV is down 0.90% versus a gain of 43.51% for XLE.
Over three years, BIV compounded at +4.61% per year against +16.00% for XLE; over five years the annualized figures are -0.28% and +26.11% respectively. Across the full 19-year window we track, XLE has the edge at +7.17% annualized vs +0.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% compared with 5.7% for BIV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.3% for BIV and -76.7% for XLE. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIV charges 0.03% per year while XLE charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, BIV currently yields 4.28% against 2.55% for XLE.
Holdings Overlap
BIV and XLE share 0 holdings out of 304 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BIV or XLE?
BIV has an expense ratio of 0.03% while XLE charges 0.08%. BIV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, BIV or XLE?
Over the past year BIV returned +0.81% vs +50.60% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (19 years), BIV annualized +0.98% vs +7.17% for XLE. Past performance does not guarantee future results.
Which is riskier, BIV or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 5.7% for BIV. Worst drawdown: BIV -20.3% vs XLE -76.7%.
Should I hold both BIV and XLE?
BIV and XLE have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIV and XLE?
BIV and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 304 unique securities.
Which pays a higher dividend, BIV or XLE?
BIV yields 4.28% while XLE yields 2.55%, so BIV currently pays the higher dividend yield.
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